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which springs are the best and give an improvement in handling, or at the very least don't make it worse.

I want to close up the arch gap so im thinking of a 60mm drop on the front and id like alittle less on the back. is this ok on the stock shocks without damaging them.

buget is around £200.

Well, I have the OEM sport suspension on my '00 Touring. Love it as a great combination of handling and ride. That said, 60mm is well over a 2 inch drop and the sport suspension is about 3/4" drop (roughly 20 mm) vs. the standard suspension.

If you want great handling, you need to get rid of your ebay coilovers get yourself a nice spring/shock combo or coilovers. I prefer coilovers because you have adjustments that you can fine tune. Some good coilovers that you might want to look into are ST V1 Coilovers or KW V1 coilovers.